Alternating current is electricity that flows first in one direction and then the other, in contrast to direct current which flows only in one direction. Some key developments in alternating current include William Stanley designing an efficient power transfer device in 1886 and contributions by Nikola Tesla and others. AC is commonly used today because it can be transformed to different voltages allowing power to be distributed over long distances more efficiently. The voltage and current values in an AC circuit are represented using root-mean-square values to average out the changing values. Components like resistors, capacitors, and inductors interact differently with alternating current compared to direct current due to properties like reactance.